HTC buys into OnLive for game streaming on phones?

Also, mad about Saffron Digital

Mobile phone giant HTC is taking a $39m stake in OnLive - a sign that the cloud-based gaming platform service will show up on smartphones in the near future.

OnLive, which launched last year in the States, offers hardcore gaming without the need for a console, with all content remotely stored on servers.

Yesterday HTC announced the impending takeover of Saffron Digital, a UK developer of video-on-mobile software, for £30m.

HTC CEO Peter Chou said: "Saffron Digital has developed an incredible expertise in mobile multimedia delivery. This ability to deliver optimised content in the future will be a key asset as content becomes more and more complex and localised."

HTC is handling the two investments through separate subsidiaries, but is there any technology linkage going on here? ®